Short term Financing
1) Your firm issues 20-year bonds. This type of financing would be most appropriate for which of the following activities?
A) The support of accounts receivable
B) The construction of a new warehouse
C) The support of accounts payable
D) The financing of inventory
2) Your firm borrows money from the bank on a short-term note due in 9 months. This type of financing would be most appropriate for which of the following activities?
A) The support of accounts receivable
B) The construction of a new warehouse
C) The support of accounts payable
D) The financing of new equity
3) Which of the following is NOT considered a source of short-term financing?
A) a 10-year bond
B) a banker's acceptance
C) a 90-day bank loan
D) an issue of commercial paper
4) ________ is/are the most common form of short-term financing for a small and medium sized firms.
A) Commercial paper
B) Banker's acceptances
C) Short-term bank loans, or promissory notes,
D) New common stock
1.
The construction of a new warehouse
2.
The support of accounts receivable
3.
a 10-year bond
4.
Short-term bank loans, or promissory notes
Short term Financing 1) Your firm issues 20-year bonds. This type of financing would be most...
Your firm issues 20-year bonds. This type of financing would be most appropriate for which of the following activities? a. the support of accounts receivable b. the construction of a new warehouse c. the support of accounts payable d. the financing of inventory
2) Your firm borrows money from the bank on a short-term note due in 9 months. This type of financing would be most appropriate for which of the following activities? A) The support of accounts receivable B) The construction of a new warehouse C) The support of accounts payable D) The financing of new equity 3) Which of the following is NOT considered a source of short-term financing? A) a 10-year bond B) a banker's acceptance C) a 90-day bank...
What are sources of short-term financing? Check all that apply: Short-term bank loans Accounts receivable financing Inventory financing Accounts payable Commercial paper
Tobit Financing offers short-term financing plans to other companies. It buys the accounts of other companies at a discount and collects the full amount from the customers of those companies. Which of the following short-term financing options is being provided by Tobit Financing in this scenario? A) Trade Credit B) Commercial Paper C) Factoring D) Short-term Bank Loans
22 ________ is the right but not the obligation to make a particular business decision. Net present value Real option analysis Internal rate of return Modified internal rate of return 23 if we are simply interested in determining whether the market as a whole, such as the S&P 500, is over- or undervalued, then the perpetual constant growth model is reasonable. True False 26 For a project to be accepted, the ________ may be greater than or less than the...
Which of the following is not a type of short-term financing? a. Trade credit b. Domestic stock c. Accounts receivable financing d. Line of credit e. Accruals
2. Types of short-term bonds Short-term debt securities have a maturity of one year or less. The characteristics of the debt securities will depend upon the capital n borrower and the investment needs of the lender. In the following table, identify the term that best matches each type of short-term d being described Definit Term Tiger Telecommunications Company needs to borrow $1 million overnight and is willing to secure the loan with a portfolio of securities that the borrower will...
(Related to Checkpoint 18.2) (Calculating the cost of short-term financing) The R. Morin Construction Company needs to borrow $120,000 to help finance the cost of a new $180,000 hydraulic crane used in the firm's commercial construction business. The crane will pay for itself in one year, and the firm is considering the following alternatives for financing its purchase: Alternative A. The firm's bank has agreed to lend the $120,000 at a rate ofb13percent. Interest would be discounted, and a 15...
(Related to Checkpoint 18.2) (Calculating the cost of short-term financing) The R. Morin Construction Company needs to borrow $90,000 to help finance the cost of a new $135,000 hydraulic crane used in the firm's commercial construction business. The crane will pay for itself in one year, and the firm is considering the following alternatives for financing its purchase: Alternative A. The firm's bank has agreed to lend the $90,000 at a rate of 12 percent. Interest would be discounted, and...
Cost of short-term financing) The R. Morin Construction Company needs to borrow $90 comma 000 to help finance the cost of a new $126 comma 000 hydraulic crane used in the firm's commercial construction business. The crane will pay for itself in 1 year, and the firm is considering the following alternatives for financing its purchase: Alternative Along dashThe firm's bank has agreed to lend the $90 comma 000 at a rate of 12 percent. Interest would be discounted, and...